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Value Area

Volume Price Analysis glossary · Support, Resistance & Breakout Mechanics

Definition

The price range encompassing approximately 70% of total volume in a Volume at Price histogram.

Value Area in plain English

Imagine tracking every price where a stock traded all day and asking, 'Where did most of the action happen?' The Value Area is the price band where roughly 70% of that trading took place — the neighborhood where buyers and sellers mostly agreed a fair price lived. Prices inside this zone are considered 'accepted' and normal, while moves far outside it stand out as unusual. It's basically the market's comfort zone, and traders watch how price behaves as it enters or leaves it.

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